Lawmakers target proposed amusement, cigarette taxes

Tuesday, Jan. 21, 2003 | 11:07 a.m.

CARSON CITY -- Gov. Kenny Guinn's $1 billion tax plan has drawn some early opposition from legislators who are questioning a new amusement tax and tripling of the cigarette levy.

The Senate Finance Committee and the Assembly Ways and Means Committee began hearings this morning on Guinn's $4.8 billion two-year budget.

To help balance the budget, Guinn is recommending a 7.3 percent tax on admissions and amusements to collect $167 million over the next two fiscal years. Guinn presented his plan Monday night in his State of the State address.

State Budget Director Perry Comeaux said this tax would apply to such things as concerts but would not be levied for entertainment in casinos, which is already taxed. And participatory activities would be excluded.

Assemblywoman Sheila Leslie, D-Reno, questioned why the amusement tax would be excluded on golf and bowling but levied on video rentals and movies.

"That's a cause for alarm," she said.

Assemblywoman Chris Giunchigliani, D-Las Vegas, questioned the reasoning for exempting golf and bowling.

Comeaux said the governor's tax task force "didn't want to discourage participatory activities."

Assemblyman Morse Arberry, D-Las Vegas, questioned the cigarette tax and its effect on the "die hard smokers." He said the cigarette tax, which is Guinn proposes be raised from 35 cents a pack to $1.05, might discourage smokers and result in less revenue.

He said this might mean the tax collections from cigarettes keep going down.

Comeaux said the collections from the cigarette tax have continued to increase slightly or remain flat in recent years, despite the campaign to stop smoking.

The budget director said he expected the revenue to keep coming in but "it will eventually dry up over time."

Guinn wants early passage of the cigarette tax and an 89 percent increase in the liquor tax. He is also calling for raising the per employee tax from $100 to $300 a year; boosting the fees charged by the Secretary of State by 50 percent and raising the fees for restricted slot machines by 33 percent.

The governor wants those raised by April 1. If passed, the amusement tax would start July 2003 and a 15-cent increase in the property tax would start in July 2004.